The Hindu Business Line : Division of assets: Ambanis to resume talks after May 21

THE talks for settling the Reliance family feud is expected to gather momentum with Mr Anil Ambani slated to resume formal negotiations in this regard after May 21.

Informed sources said the Ambani brothers, Mr Mukesh and Mr Anil, would convey their fresh perspectives on the division of Reliance group assets through Mr K.V. Kamath, Chairman of ICICI Bank.

Sources said the settlement process would move forward in the last week of the current month as the younger brother, Mr Anil Ambani, was likely to resume talks only after May 21 for "personal reasons". This follows a significant thaw in the sibling rivalry, which reached a crescendo with the younger Ambani going public with allegations pertaining to corporate governance in Reliance Industries Ltd, the flagship group company, on April 27 even as the board met for the annual financial statement.

It is learnt that a key figure in the UPA Government stepped in to warn about a possible intervention by the establishment if the feud continued to rage in the public domain. Meanwhile, Mr Anil Ambani, through his trusted manpower, has been taking a close look at Reliance Infocomm, the group's telecom arm that was slated to go to him as per the asset division in the Kamath formula.

According to the original plan, with valuation done by Mr Nimesh Kampani, Chairman of JM Morgan Stanley, Mr Mukesh Ambani was to retain Reliance Industries and IPCL, while Reliance Infocomm, Reliance Capital and Reliance Energy would be transferred to Mr Anil Ambani.

It is learnt that while Mr Mukesh Amabani has had no major differences with the Kamath plan, the fact that two of the major companies that the younger Ambani inherits are cash guzzlers in the short-to-medium term queered the pitch for settlement.

However, sources said, the fate of ownership of Reliance Infocomm business hung in balance as the two brothers re-start negotiations. Whether Mr Anil Ambani will keep the business accompanied by a cash component or would push for alterations in the original Kamath formula is left to be seen.

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